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Redalyc.An Analysis of Industrial Districts and Triple Helix Of RAI - Revista de Administração e Inovação ISSN: 1809-2039 [email protected] Universidade de São Paulo Brasil Amaral, Marcelo; Lima, Raphael; da Silva Motta, Gustavo; Fagundes, Mariana; Schocair, Marília An analysis of industrial districts and Triple Helix of innovation–are gional development experience in the south of the state of Rio de Janeiro RAI - Revista de Administração e Inovação, vol. 14, núm. 4, 2017, pp. 280-289 Universidade de São Paulo São Paulo, Brasil Available in: http://www.redalyc.org/articulo.oa?id=97354359002 How to cite Complete issue Scientific Information System More information about this article Network of Scientific Journals from Latin America, the Caribbean, Spain and Portugal Journal's homepage in redalyc.org Non-profit academic project, developed under the open access initiative Available online at www.sciencedirect.com RAI Revista de Administração e Inovação 14 (2017) 280–289 http://www.rai-imr.com.br/pt/ An analysis of industrial districts and Triple Helix of innovation–aregional development experience in the south of the state of Rio de Janeiro Marcelo Amaral ∗, Raphael Lima, Gustavo da Silva Motta, Mariana Fagundes, Marília Schocair Universidade Federal Fluminense, Volta Redonda, Rio de Janeiro, RJ, Brazil Received 27 September 2016; accepted 27 July 2017 Available online 30 August 2017 Scientific Editor: Felipe Borini Abstract This work consolidates a research effort to analyze 70 years of economic development in the region of the Paraíba do Sul River, in the south of the state of Rio de Janeiro, Brazil. The paper follows the trajectory of the leader company, steelmaker Companhia Siderúrgica National, and its relations with other local actors, such as government and universities. The research question investigates if the steel market is still the company’s core business and its evolution in the competitive global production network. This work introduces a different exploratory approach, analyzing productive networks using an industrial district typology and the linkages based on the Triple Helix of university–industry–government. The literature review and case study show the first transition, after the privatization process in the nineties, transforming a state-owned company with a focus in the national market into a transnational corporation with business on four continents. The second transition, from the steel market to a globally integrated production chain of mining and steel is underway. The region’s configuration migrated from a company town in a state- centered model to a central-radial arrangement. The second migration to a satellite platform is in progress. Regarding technology development, the company’s strategy changed from in-house research and development to buying technology. There is a recent effort to recreate interaction space with universities. © 2017 Departamento de Administrac¸ao,˜ Faculdade de Economia, Administrac¸ao˜ e Contabilidade da Universidade de Sao˜ Paulo – FEA/USP. Published by Elsevier Editora Ltda. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/). Keywords: CSN; Privatization; Regional economic development; Innovation management; Triple Helix; Production networks Introduction The decision to build the mill in the region was related to its equidistance from the leading consumer centers in the country Companhia Siderúrgica National (CSN) was incorporated by (Rio de Janeiro and São Paulo), concentrating half of Brazil’s the Brazilian government during the Second World War as a GDP. Volta Redonda was a living laboratory from the Vargas symbol of the country’s industrialization process in the twenti- period (1930–1945), where the government experimented with eth century. Founded on April 9, 1941 by a decree of Brazilian theories about driving the country’s economic development. dictator Getúlio Vargas, CSN started its operations on October The company, over the past 70 years, has attracted many 1, 1946, at a site bordering the Paraíba do Sul River in the cur- suppliers and service providers to the region. Comprehensive rent city of Volta Redonda, in the south of the state of Rio de services and educational sectors have been developed to provide Janeiro. Initially, the company produced coke, cast pig iron, and trained people and expertise. These create a dynamic of regional long products (Bedê, 2004; Lima, 2010). development (Lima, 2010). The privatization process in the nineties and the new private management redirected the com- pany’s strategy and reconfigured the set of relationships along ∗ Corresponding author. the production chains (Santos, 2010; Lima, 2010; Fagundes, E-mail: [email protected] (M. Amaral). Garcia, Motta, & Armond-de-Melo, 2014; Fagundes, Ferreira, Motta, & Leal Junior, 2016). Some works have identified a loss Peer Review under the responsibility of Departamento de Administrac¸ão, Faculdade de Economia, Administrac¸ão e Contabilidade da Universidade de in the regional development dynamic (Ferreira, 2012; Monteiro São Paulo – FEA/USP. & Lima, 2015). Others have indicated the maturing process of http://dx.doi.org/10.1016/j.rai.2017.07.005 1809-2039/© 2017 Departamento de Administrac¸ao,˜ Faculdade de Economia, Administrac¸ao˜ e Contabilidade da Universidade de Sao˜ Paulo – FEA/USP. Published by Elsevier Editora Ltda. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/). M. Amaral et al. / RAI Revista de Administração e Inovação 14 (2017) 280–289 281 Brazilian capitalism and the transformation of CSN into a global Global production networks are complex structures with player (Amaral, Motta, Lima, Fagundes, & Schocair, 2016). various links that form multidimensional multilayered lattices. Thus, the object of this paper is to analyze the economic Networks benefit from ICTs and advances in logistics sys- development of the Middle Paraíba do Sul Valley Region (MPR- tems to strengthen time/space relations on global, national and RJ, an abbreviation created by Ferreira, 2012). There are many regional/local scales. It can happen dependently or indepen- ways to do that, but it was choosen discuss the trajectory of the dently one from another (Dicken, 2011). The organizational key company. Other works have made a similar effort, looking at challenge is how to remain competitive in a business envi- the region (Amaral, Ferreira, & Teodoro, 2011; Ferreira, 2012; ronment influenced by the internationalization of information, Lima, 2010) and aspects of CSN’s trajectory (Amaral et al., products and services while also improving the workforce and 2016; Bedê, 2004; Fagundes et al., 2014, 2016; Santos, 2010). focusing on profitable investments (Lima, 2010). This work introduces a different approach, analyzing productive The developed economies are places where the phenomenon networks (Markusen, 1988, 1995) and Triple Helix (3H) link- of intensified competitiveness can be better observed because ages (Etzkowitz & Leydesdorff, 2000) and discussing innovation labor is relatively scarce and expensive (low birth rates com- and competitiveness. The analysis of the period helps under- bined with high skills), generating high productivity (Porter, stand the dynamics of development through the relationship with 1998). Regarding developing economies, recently recognized as stakeholders’spheres of academia, industry and government, and world powers, they have different competitive levels. They have their effort to compete in the international arena. a large low-cost workforce with reasonable qualifications that is The original research question was to understand if the steel relatively idle. The contrast in productivity and costs between business is still the core business of CSN and what the company’s economies and regions are key factors that attract and maintain position is in the global production network and steel market. companies in emerging countries. It is relatively easy to find This question is relevant per se and leads to investigation of the places to build industrial plants with government subsidies and company’s and region’s evolution over time. The second part of lower operating costs. This scenario is part of the trend for mobil- the study is related to CSN’s efforts in research and development ity of businesses and investments from developed economies to (R&D), as a way to break with technology dependence in an emerging ones (Markusen, 1995). emerging country and be competitive on the global stage. A particular challenge to the companies created or relocated This work does not have a specific hypothesis or assump- to emerging regions is how to stay competitive. With improve- tion. Insead, it provides a general overview of the company’s ment of local productivity and income, there is a consequent trajectory, based on exploratory research approach supported by increase in costs, which creates a risk of capital migration to theories such as networks of production and 3H. The paper has new emerging regions. As an alternative, national and subna- seven parts: introduction, literature review, a brief presentation tional governments are investing in the concept of improving of CSN’s trajectory, statements of people from the university the “local climate for investment”, causing economists, busi- and government in the region, discussion, and final comments. ness people, geographers and planners to seek alternatives to increase attractiveness. Theoretical basis These trends attract the attention of researchers to the field of “regional economic development”. Researchers from
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